Reported strong liquidity of $77 million and net debt of $51 million at year-end 2016

Announced year-end 2016 proved reserves of 177.0 million barrels of oil equivalent (MMBoe), with approximately 35% oil; utilizing February 6, 2017 strip pricing, the Company’s year-end 2016 proved reserves had a PV-10 of approximately $1.1 billion

Achieved total Company production of 25,259 Boe per day in the fourth quarter of 2016, of which 83% was in the Mississippian Lime with the balance of production in the Anadarko Basin

Generated Adjusted EBITDA of $35 million, which outpaced operational capital by $13 million for the fourth quarter of 2016

Disclosed a 2017 capital budget of $90 to $100 million with a near term one rig drilling program focused solely in the Mississippian Lime and funded with internally-generated cash flow and available cash

Brought eight non-Arbuckle salt water disposal (SWD) wells online in the Mississippian Lime during 2016, with SWD injection into non-Arbuckle formations currently averaging 42% of total Company Mississippian Lime injection volumes, up from 0% in 2015

Jake Brace, President and Chief Executive Officer commented, “2016 was a turning point year for Midstates as we were able to operate safely, efficiently and effectively through a restructuring process that eliminated approximately $2 billion of debt and established a strong financial foundation for future growth. Midstates’ operational and land teams grew our reserves and acreage position in the Miss Lime substantially, which provides us with a significant runway of economic drilling locations. As the commodity price environment continues to stabilize and strengthen, our strategy will be to continue delivering strong operational results and grow EBITDA and reserve value to the benefit of all our stakeholders.”

(Adjusted EBITDA, Cash Operating Expenses and PV-10 are non-GAAP financial measures. Each measure is defined and reconciled to the most directly comparable GAAP measure in the tables below.)

Capital Structure and Liquidity

The Company successfully emerged from restructuring on October 21, 2016. The financial reorganization eliminated approximately $2 billion of debt and more than $185 million in annual interest expense, yielding a clean balance sheet with a new capital structure that includes approximately 25.0 million common shares currently outstanding and a $170 million first lien revolving credit facility maturing in 2020. At year-end 2016, Midstates’ had approximately $128 million drawn against the facility (excluding letters of credit), $77 million in cash and cash equivalents on hand, and net debt of approximately $51 million.

Fourth Quarter 2016 Production and Pricing

Production totaled 25,259 Boe per day. Production from the Company’s Mississippian Lime properties contributed roughly 83%, or 20,903 Boe per day, and the Anadarko Basin properties contributed roughly 17%, or 4,356 Boe per day. For the total Company, oil volumes comprised 30% of total production, natural gas liquids (NGLs) 24%, and natural gas 46%.

Midstates’ average realized price per barrel of oil was $47.19, while its average realized price for NGL sales was $19.51 per barrel. Natural gas averaged $2.74 per thousand cubic feet (Mcf).

Hedging Update

To reduce downside commodity price risk and protect cash flow, Midstates reinstated a hedging program in January 2017. The Company entered into a number of swaps, collars, and 3-way collars to hedge a portion of the Company’s oil and natural gas revenues into the first quarter of 2018. A summary of the Company’s hedges is included in the below table.

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017

March 31, 2018

NYMEX WTI

Fixed swaps

Hedge position (Bbls)

105,500

227,500

207,000

207,000

—

Weighted average strike price

$

55.17

$

55.12

$

55.29

$

55.29

$

—

Collars

Hedge position (Bbls)

74,500

136,500

46,000

46,000

—

Weighted average ceiling price

$

59.68

$

59.73

$

60.00

$

60.00

$

—

Weighted average floor price

$

50.00

$

50.00

$

50.00

$

50.00

$

—

Three way collars

Hedge position (Bbls)

—

—

115,000

115,000

135,000

Weighted average ceiling price

$

—

$

—

$

62.80

$

62.80

$

63.50

Weighted average floor price

$

—

$

—

$

50.00

$

50.00

$

50.00

Weighted average sub-floor price

$

—

$

—

$

40.00

$

40.00

$

40.00

NYMEX HENRY HUB

Fixed swaps

Hedge position (MMBtu)

—

2,912,000

2,944,000

992,000

—

Weighted average strike price

$

—

$

3.38

$

3.38

$

3.38

$

—

Collars

Hedge position (MMBtu)

1,298,000

—

—

—

—

Weighted average ceiling price

$

3.70

$

—

$

—

$

—

$

—

Weighted average floor price

$

3.10

$

—

$

—

$

—

$

—

Three way collars

Hedge position (MMBtu)

—

—

—

610,000

900,000

Weighted average ceiling price

$

—

$

—

$

—

$

4.30

$

4.30

Weighted average floor price

$

—

$

—

$

—

$

3.25

$

3.25

Weighted average sub-floor price

$

—

$

—

$

—

$

2.50

$

2.50

Fourth Quarter 2016 Costs and Expenses

Cash Operating Expenses, which include lease operating expenses, severance and other taxes, and cash general and administrative costs, but exclude costs related to the restructuring, totaled $28.4 million, or $12.22 per Boe.

Lease operating and workover expenses (LOE) totaled $18.6 million, or $8.01 per Boe, while severance and other taxes were $1.7 million, or $0.74 per Boe.

General and administrative expenses totaled $8.1 million, or $3.50 per Boe, of which $4.2 million, or $1.81 per Boe, was non-cash compensation expense.

Interest expense totaled $1.4 million (net of amounts capitalized). The Company capitalized $0.7 million in interest to unproved properties.

The Company did not record an income tax benefit or loss, and had an effective tax rate of 0%.

Operational Update

Mississippian Lime

At year-end 2016, Midstates held about 116,000 net acres in the Mississippian Lime, an increase of about 34,000 net acres compared to year-end 2015. This acreage position includes acreage capable of being earned under various farm-in agreements that the Company executed during 2016.

Other key highlights include:

Added 121 technical proved undeveloped (PUD) locations in 2016 with one rig operating for most of the year

Produced an average of 20,903 Boe per day in the fourth quarter of 2016, of which 29% was oil, 23% NGLs, and 48% natural gas

Reduced average capital expenditures for new wells brought online in 2016 by approximately $1.4 million from 2014 averages to $2.6 million per well, including drilling, completion and facility costs, due to efficiency gains and lower drilling cycle times

Reduced average rig release to rig release drilling cycle times to 13.3 days in 2016 from 22.8 days in 2014

Spud 35 wells and placed 43 wells online in the full year 2016

With respect to SWD capacity, the Company brought eight injection wells online in 2016, all of which dispose of water in formations other than the Arbuckle. The Company currently disposes of approximately 81,000 barrels (Bbls) per day, or roughly 42% of its produced water, in non-Arbuckle formations. The Company plans for future SWD wells to be permitted for disposal into formations other than the Arbuckle and currently has 6 wells waiting to be drilled with all permits approved and 2 wells pending permits before the Oklahoma Corporation Commission (OCC). The Company is currently in compliance with OCC requirements and believes its looped saltwater disposal system provides operational flexibility to meet future OCC Arbuckle injection limits without material curtailments of hydrocarbon production.

Anadarko Basin

At year-end 2016, Midstates held about 105,000 net acres in the Anadarko Basin. The Company averaged production of 4,356 Boe per day in the fourth quarter of 2016, of which 35% was oil, 26% NGLs, and 39% natural gas. During the third quarter of 2016, the Company entered into a farm-out agreement for a portion of its primary term Anadarko Basin acreage in western Oklahoma to cost-effectively preserve leasehold rights and to assess the area’s NW Stack potential.

Proved Reserves

Midstates’ estimated proved reserves for year-end 2016 totaled 177.0 MMBoe, up 141% from 73.5 MMBoe at year-end 2015. The Company’s year-end 2016 reserves consisted of 69.6 MMBoe of proved developed reserves and 107.4 MMBoe of proved undeveloped reserves. Total proved reserves were comprised of 35% oil, 21% NGLs, and 44% natural gas. Geographically, 96% are in the Mississippian Lime (which includes the Mississippian Lime and Hunton properties in Oklahoma) and 4% are in the Anadarko Basin in Oklahoma and Texas. The Company’s proved undeveloped reserves increased substantially year-over-year due to the Company’s recently completed restructuring and improved liquidity as of year-end 2016. At the end of 2015, the Company was unable to record any PUDs due to SEC rules that prohibit the booking of proved undeveloped reserves if an entity lacks access to the capital resources necessary to develop those reserves.

At year-end 2016, Midstates’ proved reserves, as prepared utilizing SEC pricing, had a net present value discounted at 10% (PV-10) of $578.2 million. The Company’s estimated reserves at year-end 2016 were based on the average of first day of the month prices for oil, NGL, and natural gas, which were $42.75 per Bbl, $15.31 per Bbl, and $2.48 per million BTUs, compared to $50.28 per Bbl, $17.44 per Bbl, and $2.59 per million BTUs, respectively, for 2015.

Oil (MBls)

Natural Gas (MMcf)

NGLs (MBbls)

Total (MBoe)

PV-10(in millions)

Mississippian Lime:

Proved developed producing

15,358

162,997

12,673

55,197

$

306,623

Proved developed non-producing

1,540

20,335

1,597

6,526

20,553

Proved undeveloped

41,692

270,905

20,523

107,366

216,493

Total

58,590

454,237

34,793

169,089

$

543,669

Anadarko Basin:

Proved developed producing

2,800

18,122

2,079

7,899

$

34,486

Proved developed non-producing

—

—

—

—

—

Proved undeveloped

—

—

—

—

—

Total

2,800

18,122

2,079

7,899

$

34,486

Total Proved

61,390

472,359

36,872

176,988

$

578,155

Utilizing February 6, 2017 strip pricing, the Company’s year-end 2016 proved reserves had a PV-10 of approximately $1.1 billion.

Capital Expenditures

In the fourth quarter of 2016, Midstates invested $22 million in drilling, completions and facilities, substantially all of which was in the Mississippian Lime.

The following table provides operational capital spending by area, which excludes capitalized interest, capitalized internal costs, asset retirement costs incurred and expenditures related to other property, plant and equipment, such as furniture and fixtures and capitalized software costs (in thousands):

For the Three Months Ended December 31, 2016

For the Year EndedDecember 31, 2016

Mississippian Lime

$

21,275

$

138,855

Anadarko Basin

422

1,580

Operational capital expenditures incurred

$

21,697

$

140,435

The Company has adopted a 2017 capital budget of $90 to $100 million based upon a near term one rig drilling program focused solely in the Mississippian Lime. Midstates currently plans to drill 24 to 26 wells during the year. The Company expects to fully fund the 2017 capital expenditure budget with internally-generated cash flow and currently available cash.

Fresh Start Accounting

Midstates adopted fresh start accounting as of October 21, 2016, the date the Company emerged from its Chapter 11 reorganization. Adopting fresh start accounting results in a new reporting entity for financial reporting purposes and as a result, the Company allocated its reorganization value to its individual assets, including oil and gas property, plant and equipment, based upon their estimated fair values as of that date, and its historical retained deficit was eliminated. Due to the application of fresh start accounting, Midstates’ consolidated financial statements on or after October 21, 2016 are not comparable with its consolidated financial statements prior to that date. References to “Successor” in the following tables refer to the Company after the adoption of fresh start accounting, while references to “Predecessor” refer to the Company prior to that adoption. References to the “fourth quarter of 2016” herein refer to the operational activities, production, revenue and expenses of both the Successor and Predecessor, subject to any adjustments described elsewhere within this press release. Please refer to the Company’s Current Report on Form 8-K filed on October 27, 2016 for further information regarding Midstates’ emergence from chapter 11 restructuring and its Current Report on Form 8-K filed on January 17, 2017 for further information on the application of fresh start accounting.

Conference Call Information

The Company will host a conference call to discuss fourth quarter and full-year 2016 results on Wednesday, March 8 at 11:00 a.m. Eastern time (10:00 a.m. Central time). Participants may join the conference call by dialing (877) 645-4610 (for U.S. and Canada) or (707) 595-2723 (International). The conference call access code is 72815675 for all participants. To listen via live web cast, please visit the Investor Relations section of the Company’s website, www.midstatespetroleum.com.

An audio replay of the conference call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until midnight on April 8, 2017 and can be accessed by dialing (855) 859-2056 (for U.S. and Canada) or (404) 537-3406 (International). The conference call audio replay access code is 72815675 for all participants. The audio replay will also be available in the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact, including statements regarding the Company’s strategy, future operations, financial position, estimated revenues and losses, projected costs, resource potential, drilling locations, prospects and plans and objectives of management, are considered forward-looking statements. Without limiting the generality of the foregoing, these statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Although the Company believes that its plans, intentions and expectations reflected in or suggested by the forward-looking statements made in this press release are reasonable, the Company gives no assurance that these plans, intentions or expectations will be achieved when anticipated or at all. Moreover, such statements are subject to a number of factors, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These factors include, but are not limited to variations in the market demand for, and prices of, oil and natural gas; uncertainties about the Company’s estimated quantities of oil and natural gas reserves, resource potential and drilling locations; the adequacy of the Company’s capital resources and liquidity; general economic and business conditions; weather-related downtime; failure to realize expected value creation from property acquisitions; uncertainties about the Company’s ability to replace reserves and economically develop its current reserves; risks related to the concentration of the Company’s operations; drilling results; and potential financial losses or earnings reductions from the Company’s commodity derivative positions.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Midstates Petroleum Company, Inc.

Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. The Company’s operations are currently focused on oilfields in the Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and Oklahoma.

Reconciliation of PV-10 to the Standardized Measure

Midstates refers to PV-10 as the present value of estimated future net cash flows of estimated proved reserves as calculated in the respective reserve report using a discount rate of 10%. This amount includes projected revenues, estimated production costs and estimated future development costs and estimated cash flows related to future asset retirement obligations (ARO). PV-10 is a financial measure not defined under GAAP. Accordingly, the following table reconciles total PV-10 to the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. Midstates believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not a measure of financial or operating performance under GAAP, nor is it intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure of discounted future net cash flows as defined under GAAP. Additionally, standardized measure is based on proved reserves as of fiscal year-end calculated using unweighted arithmetic average first-day-of-the-month prices for the prior 12 months. GAAP does not prescribe any corresponding GAAP measure for PV-10 of reserves adjusted for pricing sensitivities. For these reasons, it is not practicable for us to reconcile PV-10 at strip pricing to GAAP Standardized Measure.

The following table provides a reconciliation of PV-10 to the standardized measure of discounted cash flows (in thousands):

(1) For illustrative purposes, Midstates has combined the Successor Period and Predecessor Period to derive combined results for the three months ended December 31, 2016 and the year ended December 31, 2016. The combination was generated by addition of comparable financial statement line item captions. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start accounting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor Period are not comparable to those of the Predecessor Period. The financial information preceding the table above provides the Successor Period and the Predecessor Period GAAP results for the applicable periods. Midstates believes that subject to consideration of the impact of fresh-start accounting, combining the results of the Predecessor Period and Successor Period provide meaningful information about the financial results of Midstates, including production, revenues and costs, that assist a reader in understanding the its financial results for the applicable periods

MIDSTATES PETROLEUM COMPANY, INC.ADJUSTED EBITDA

(In thousands)(Unaudited)

Adjusted EBITDA is a supplemental non‑GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Midstates defines Adjusted EBITDA as earnings before interest income and expense, income taxes, depreciation, depletion and amortization, property impairments, asset retirement obligation accretion, unrealized derivative gains and losses, reorganization items and non‑cash share‑based compensation expense. Adjusted EBITDA is not a measure of net income or cash flows as determined by United States generally accepted accounting principles, or US GAAP. Midstates believes that Adjusted EBITDA is useful because it allows it to more effectively evaluate its operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Midstates excludes items such as property and inventory impairments, asset retirement obligation accretion, unrealized derivative gains and losses and non‑cash share‑based compensation expense, net of amounts capitalized, from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income or cash flows from operating activities as determined in accordance with US GAAP or as an indicator of its operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Midstates computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Midstates believes that Adjusted EBITDA is a widely-followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.

The following tables present a reconciliation of Adjusted EBITDA to the US GAAP financial measures of net income (loss) and net cash provided by operating activities, respectively (in thousands):

For the Three Months Ended December 31,

For the Year Ended December 31,

2016 (1)

2015

2016 (1)

2015

Adjusted EBITDA reconciliation to net income (loss):

Net income (loss)

$

1,541,705

$

(510,865

)

$

1,333,009

$

(1,797,195

)

Depreciation, depletion and amortization

16,047

40,246

75,276

198,643

Impairment in carrying value of oil and gas properties

7,524

465,825

232,108

1,625,776

Loss on sale/impairment of field equipment inventory

—

1,981

—

1,997

(Gains) Losses on commodity derivative contracts—net

—

(5,513

)

—

(40,960

)

Net cash received (paid) for commodity derivative contracts not designated as hedging instruments

(1) For illustrative purposes, Midstates has combined the Successor Period and Predecessor Period to derive combined results for the three months ended December 31, 2016 and the year ended December 31, 2016. The combination was generated by addition of comparable financial statement line item captions. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start accounting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor Period are not comparable to those of the Predecessor Period. The financial information preceding the table above provides the Successor Period and the Predecessor Period GAAP results for the applicable periods. Midstates believes that subject to consideration of the impact of fresh-start accounting, combining the results of the Predecessor Period and Successor Period provide meaningful information about the financial results of Midstates, including production, revenues and costs, that assist a reader in understanding the its financial results for the applicable periods

MIDSTATES PETROLEUM COMPANY, INC.CASH OPERATING EXPENSES

(In thousands)(Unaudited)

The below table provides information Midstates believes may be useful to investors who follow the practice of some industry analysts who adjust operating expenses to exclude certain non-cash items. Cash Operating Expenses is not a measure of operating expenses as determined by United States generally accepted accounting principles, or GAAP. Cash operating expenses include lease operating and workover costs, gathering and transportation fees, severance and other taxes, the cash portion of general and administrative expenses (exclusive of share-based compensation) and other expenses, such as acquisition costs, transaction fees, advisory costs and severance costs.

For the Three Months Ended December 31,

For the Year Ended December 31,

2016 (1)

2015

2016 (1)

2015

Operating Expenses – GAAP

$

56,467

$

539,193

$

436,003

$

2,008,948

Adjustments for certain non-cash items:

Asset retirement accretion

308

393

1,624

1,610

Share-based compensation, net

4,198

595

5,473

4,408

Depreciation, depletion and amortization

16,047

40,246

75,276

198,643

Impairment of oil and gas properties

7,524

465,825

232,108

1,625,776

Other

—

2,058

—

2,121

Cash Operating Expenses – Non-GAAP

$

28,390

$

30,076

$

121,522

$

176,390

Cash Operating Expenses – Non-GAAP per BOE

$

12.22

$

10.58

$

11.50

$

14.70

Acquisition, transaction costs and advisory costs

$

—

$

74

$

7,590

$

36,471

Acquisition, transaction costs and advisory costs, per BOE

$

—

$

0.03

$

0.72

$

3.04

Severance and other costs associated with the Houston office closure

$

—

$

829

$

707

$

4,789

Severance and other costs associated with the Houston office closure, per BOE

$

—

$

0.29

$

0.07

$

0.40

Adjusted Cash Operating Expenses – Non-GAAP

$

28,390

$

29,173

$

113,225

$

135,130

Adjusted Cash Operating Expenses – Non-GAAP per BOE

$

12.22

$

10.26

$

10.71

$

11.26

(1) For illustrative purposes, Midstates has combined the Successor Period and Predecessor Period to derive combined results for the three months ended December 31, 2016 and the year ended December 31, 2016. The combination was generated by addition of comparable financial statement line item captions. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start accounting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor Period are not comparable to those of the Predecessor Period. The financial information preceding the table above provides the Successor Period and the Predecessor Period GAAP results for the applicable periods. Midstates believes that subject to consideration of the impact of fresh-start accounting, combining the results of the Predecessor Period and Successor Period provide meaningful information about the financial results of Midstates, including production, revenues and costs, that assist a reader in understanding the its financial results for the applicable periods